Total S.A. (Total), Borealis AG (Borealis) and NOVA Chemicals Corporation (NOVA Chemicals) announced that affiliates of the three companies have signed definitive agreements to form a joint venture in petrochemicals on the U.S. Gulf Coast.
The joint venture – in which Total will own 50% and Novealis Holdings LLC, a joint venture between Borealis and NOVA Chemicals, will own the remaining 50% – will commence subject to customary closing conditions, including receipt of regulatory approvals.
The joint venture will include: the under-construction 1 Mt/y (2.2 b lb) ethane steam cracker in Port Arthur, Texas; and Total’s existing polyethylene 400 kt/y (880 m lb) facility in Bayport, Texas; and a new 625 kt/y (1.35 b lb) Borstar ® polyethylene unit at Total’s Bayport, Texas, site, following a decision on the outcome of an acceptable EPC contract.
As announced in March 2017, the new $1.7 billion ethane steam cracker is being built alongside Total’s Port Arthur refinery and Total/BASF existing steam cracker. The project, which is scheduled to start up in 2020, will create around 1,500 jobs during peak engineering and construction activity.
